Colorado § 10-7-103 - Life insurance policies - prohibition.

§ 10-7-103. Life insurance policies - prohibition.

(1) It is unlawful for any foreign or domestic life insurance company to issue or deliver in this state any life insurance policy if it contains any of the following provisions:

(a) A provision for forfeiture of the policy for failure to repay any loan on the policy, or to pay interest on such loan while the total indebtedness on the policy is less than the loan value thereof, or any provision for forfeiture for failure to repay any such loan or to pay interest thereon, unless such provision contains a stipulation that no such forfeiture shall occur until at least one month after notice has been mailed by the company to the last-known address of the insured and of the assignee, if any;

(b) A provision limiting the time within which any action may be commenced to less than five years after the cause of action accrues;

(c) A provision by which the policy purports to be issued or to take effect more than one year before the original application for the insurance was made, if thereby the assured would rate at an age not more than one year younger than his age at date when application was made, according to his age at nearest birthday.

(2) A life insurance company doing business in Colorado may not refuse to insure, refuse to continue to insure, limit the amount or extent or kind of coverage available to an individual, or charge an individual a different rate for the same coverage solely for reasons associated with an applicant's or insured's past or future lawful foreign travel. Nothing in this subsection (2) shall prohibit a life insurer from excluding or limiting coverage of specific lawful travel, or charging a differential rate for such coverage, when bona fide differences in risk or exposure have been substantiated by the use of relevant data from at least one independent reliable source, including statistical or other mathematical analysis of available data that establishes a material variation in actual or reasonably anticipated experience that correlates to the risk of specific lawful travel. Travel advisories issued by the United States department of state shall not qualify as the sole source of data for purposes of this subsection (2). Each insurer shall maintain the data and documents that support any such differences and shall make the data and documents available upon request by the commissioner.

(3) A life insurance company doing business in Colorado shall not deny or alter benefits otherwise available to an individual with a terminal disease based on the availability of medical aid-in-dying pursuant to article 48 of title 25.

Source: L. 13: p. 351, § 44. C.L. § 2517. CSA: C. 87, § 58. CRS 53: § 72-3-5. C.R.S. 1963: § 72-3-5. L. 2006: (2) added, p. 710, § 1, effective July 1. L. 2024: (3) added, (SB 24-068), ch. 406, p. 2798, § 19, effective August 7.

Cross references: For the effect of a declaration under the "Colorado Medical Treatment Decision Act" on life insurance contracts, see § 15-18-111.

ANNOTATION

This section applies to "life insurance" only, and not to "accident insurance". Midland Cas. Co. v. Frame, 67 Colo. 179, 185 P. 656 (1919); Union Health & Accident Co. v. Welch, 71 Colo. 374, 206 P. 790 (1922).